Journal Entries

Question 1

Allowance for uncollectible accounts - to establish allowance

Answer 1

D. Uncollectible allowance expense

C. Allow for Uncollectible Accounts

Question 2

To write off an account

Answer 2

D. Allowance for Uncollectible Account

C. AR

Question 3

Asset sale

Answer 3

D. AD
D. Loss
D. Cash
C. Equipment

Question 4

Bonds Payable issued BETWEEN Interest dates

Answer 4

D. Cash
C. Interest Payable
C. Bonds Payable

Question 5

Bonds Payable at Discount

Answer 5

D. Cash
D. Discount on Bonds Payable
C. Bonds Payable

Question 6

To record interest payment on bonds payable at discount

Answer 6

D. Interest Expense
C. Discount of Bonds Payable
C. Cash

Question 7

Bonds Payable at Par

Answer 7

D. Cash

C. Bonds Payable

Question 8

To record interest payment on bonds payable at par

Answer 8

D. Interest Expense

C. Cash

Question 9

Bonds Payable at Premium

Answer 9

D. Cash
C. Premium on Bonds Payable
C. Bonds Payable

Question 10

To record payment of bonds face value at maturity

Answer 10

D. Bonds Payable

C. Cash

Question 11

To record declaration of cash dividends

Answer 11

D. Dividends

C. Dividends Payable

Question 12

Record payment of cash dividends

Answer 12

D. Dividends Payable

C. Cash

Question 13

Collect AR

Answer 13

D. Cash

C. AR

Question 14

Buy asset or cash & note

Answer 14

D. Land
C. Cash
C. Notes Payable

Question 15

Collected 100,000 pounds and converted them to dollars. Loss is recorded for decline in value.

Answer 15

D. Cash 170
D. Currency Exchange Loss 20
C. AR 190

Question 16

Dividend income

Answer 16

D. Cash

C. Dividend Income

Question 17

Depreciation Expense

Answer 17

D. Depreciation Expense

C. Accumulated Depreciation

Question 18

Typical accrued expense (salaries)

Answer 18

D. Salaries expense

C. Salaries payable

Question 19

Typical expense paid with cash (advertising)

Answer 19

D. Advertising Expense

C. Cash

Question 20

Typical expense incurred on account (advertising)

Answer 20

D. Advertising Expense

C. AP

Question 21

FOB Shipping Point - purchaser is responsible for paying freight costs

Answer 21

D. Purchases
D. Freight-In
C. Cash
C. AP

Question 22

FOB Destination - seller is responsible for paying freight costs

Answer 22

D. AR
D. Freight-Out
C. Cash
C. Sales

Question 23

To record purchase of 5,000 shares of AFS stock at $10 per share

Answer 23

D. AFS Securities 50,000

C. Cash 50,000

Question 24

To record decrease in value of AFS securities

Answer 24

D. Unrealized Gain/Loss - OCI

C. AFS Securities

Question 25

To record decrease in value of AFS securities

Answer 25

D. Unrealized G/L - OCI

C. AFS Securities

Question 26

To record increase in value of AFS securities

Answer 26

D. AFS Securities

C. Unrealized G/L - OCI

Question 27

Issuance of Preferred Stock

Answer 27

D. Cash
C. Preferred Stock
C. APIC in Excess

Question 28

Issuance of Par Value Stock

Answer 28

D. Cash
C. Common Stock
C. APIC in Excess

Question 29

Purchases

Answer 29

D. Purchases

C. Accounts Payable

Question 30

Purchase Returns

Answer 30

D. AP

C. Purchase Returns & Allowances

Question 31

Accrued Revenue

Answer 31

D. AR

C. Revenue

Question 32

Large Stock Dividend (25% and up)

Answer 32

D. Retained Earnings

C. Common Stock

Question 33

Small Stock Dividend (25% and less)

Answer 33

D. Retained Earnings
C. Common Stock
C. APIC - in Excess of Par

Question 34

To record estimated warranty cost

Answer 34

D. Warranty Expense

C. Warranty Liability